Is Ducati Up For Sale?

Beleaguered Volkswagen may put the famed Italian motorcycle maker up for sale.

Volkswagen, still under steep financial pressure from their diesel emissions scandal, is apparently looking to put some of its many assets on the auction block. Up first looks to be famed Italian motorcycle builder Ducati. In July of 2012, Volkswagen originally acquired Ducati for $909 million through a complicated transaction involving subsidiary Audi which in turn owns Lamborghini which is the current holder of Ducati. The purchase was the brainchild of then VW Chairman Ferdinand Piëch, a long time motorcycle enthusiast. Analysts at the time felt that it was more a trophy purchase for Chariman Piëch than one that made financial sense for VW.

Sources have reported that VW has enlisted Evercore, an investment bank, to investigate the possible sale options for Ducati. Estimates currently peg Ducati with a value of around $1.63 billion (1.5b €). Speculation is that Indian automaker Eicher, maker of motorcycle brand Royal Enfield is interested and exploring possibly acquiring the brand. While not as well known in the US, Royal Enfield sells more motorcycles globally than famed maker Harley Davidson. Eicher, which also partners with Polaris and Volvo Trucks for production in India is aggressively looking to grow its global portfolio. Eicher Motors recent growth means it has over $540 million* in cash reserves to put towards that global expansion goal.

Ducati sold 55,451 units in 2016. Other possible buyers of Ducati could include Harley Davidson, Polaris, and Suzuki.

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The suit says:
Winterkorn resigned within days of the scandal braking in 2015.
Volkswagen said in a statement that the lawsuit is "legally and facturally flawed" and "the company will contest it vigorously".
Volkswagen has already agreed to pay more than $25 billion in a settlement over the dieselgate scandal to buy back defective vehicles, paying fines, and setting up funds to help build out electric vehicle infrastructure. Winterkorn has already been charged in the US.

The U.S. Security and Exchange Commission has filed suit in San Francisco on Thursday alleging that from April 2014 through May 2015, Volkswagen fraudulently issued more than $13 Billion in bonds and securities in the U.S. market. During that time, the SEC alleges that Winterkorn and other senior management knew about the problem with over 500,000 diesel vehicles that exceeded legal emissions limits.
The suit says:
Winterkorn resigned within days of the scandal braking in 2015.
Volkswagen said in a statement that the lawsuit is "legally and facturally flawed" and "the company will contest it vigorously".
Volkswagen has already agreed to pay more than $25 billion in a settlement over the dieselgate scandal to buy back defective vehicles, paying fines, and setting up funds to help build out electric vehicle infrastructure. Winterkorn has already been charged in the US.